US based power producer AES Corporation has executed a definitive agreement to acquire energy firm DPL in a transaction valued at $4.7bn on an enterprise value basis.

Under the terms of the agreement, AES will pay $30 per share in cash to DPL shareholders, for a total of $3.5bn for the equity, and assume $1.2bn in net debt.

The consummation of the transaction is subject to approval of DPL shareholders, the Public Utilities Commission of Ohio, the Federal Energy Regulatory Commission, and the antitrust review under Hart-Scott-Rodino Act.

Upon closing of the transaction, DPL will become a wholly-owned subsidiary of AES.

DPL operates over 3,800MW of power generation capacity and serves over 500,000 customers in west central Ohio through its subsidiaries, DP&L and DPL Energy Resources.